Question: I. It costs Layam Co. P15 variable cost and P10 fixed cost to produce a toy car The toy car sells for P50 . A

I. It costs Layam Co. P15 variable cost and P10 fixed cost to produce a toy car The toy car sells for P50. A foreign customer offers to purenase P5,000 units at P20. What is the effect of this offer of the net income of Layam Co.? (indicate increase or decrease)

II. One of the segments of MAHAHA, INC. has the following data for the year revenues of P450,000; variable cost of P360,000 and fixed cost of P980,000. What is the effect on the total net income if this is eliminated? (Indicate Increase or decrease)

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